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carrying cost

   Also found in: Legal, Financial, Wikipedia 0.01 sec.
ThesaurusLegend:  Synonyms Related Words Antonyms
Noun1.carrying cost - the opportunity cost of unproductive assets; the expense incurred by ownership
opportunity cost - cost in terms of foregoing alternatives


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Appetite for new office and hotel space may be years away, but the person said that Tribeca Associates hadn't taken out a construction loan on the project and had only done preliminary work, indicating that its principal carrying cost were the ground rental payments to Trinity.
They are "taking advantage of reduced carrying costs, rock bottom interest rates and lower house prices," the report explained.
For example, $1,100 cost would reduce carrying cost from $25,000 to $2,750, compared to a higher price of $10,000 for 100 units.
 
 
 
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